Rate cut - 20% salary cut + 10% less hours - Acceptable?

[LondonManc]

This sounds like ING to me. and it's a double wammy. So it's 72% of previous rate

That's crap then. I'd accept the drop from, say, 2500 to 2000 per week if you're finishing at lunchtime on Fridays but I'd be looking at other options as well.

If you've got nothing else, check the notice clause on the reissued contract and start looking if that's not prohibitive.

[silent bob]

This sounds like ING to me. and it's a double wammy. So it's 72% of previous rate

[LondonManc]

Been told today all contractors must take a 10% cut in hours (to 36 hours) (which is fine) and also a 20% rate cut. 5-10% rate cut I would consider but 20% seems very high along with the reduced hours.

I know this topic has been discussed recently here but my question is: Is 20% a normal cut to what you have experienced.

Just to be clear, are you getting 80% of the money for 90% of the work or is it a compound 72% of your previous billable week?

[Old Greg]

I'm on an hourly rate. First time in 16 years...Not so strange in "The Industry" I'm in...

I've always been on a daily rate but the client very decently offered to convert it into an hourly rate while I'm working additional hours for Covid 19 related projects. Then we had to start working at home, so I'm billing 1.25 days per day for a shorter day once my commute is taken into account.

[jf2010]

Are you on an hourly rate? That’s a bit strange

Yes, always been hourly rate. (max 40 hours and now reduced to 36)

Yes original contract was on site. Due back in the office beginning of Sept

[WTFH]

Current situation I am working remotely and a new job is not so appealing.

Was the original contract on site?

[PerfectStorm]

Have you got leverage or do you feel lucky to be there? That'll give you your answer.

There are exceptions, always.

[Scruff]

I'm on an hourly rate. First time in 16 years...Not so strange in "The Industry" I'm in...

[GhostofTarbera]

Good question. I just renewed my contract for another 6 months last week, and then get this news today. 2 weeks ago I had an offer of the same full rate for a new client, and refused in the end as I was renewed.

Current situation I am working remotely and a new job is not so appealing. I think I will just go to max 5/10% to attempt to negotiate.

When working from home you can do multiplie contracts, start the other one also

Are you on an hourly rate? That’s a bit strange


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[ladymuck]

You have two counter options: either 20% cut but no reduced hours, or lower rate cut with reduced hours.

Decide whether you can / will walk but don't mention walking in your negotiation or else you'll put the idea in their mind and they may just bin you off regardless.

If you can't walk, start looking, get a new gig then walk. Check your notice period.

[jf2010]

How does the new rate stack up against what you could get elsewhere? Could you walk into a contract easily?

Pretty bad. I would say 30% less in general. But, no I guess, couldn't walk into a new role as everything is so up in the air right now and slow.

[jf2010]

What other option have you got?

Good question. I just renewed my contract for another 6 months last week, and then get this news today. 2 weeks ago I had an offer of the same full rate for a new client, and refused in the end as I was renewed.

Current situation I am working remotely and a new job is not so appealing. I think I will just go to max 5/10% to attempt to negotiate.

[northernladuk]

What other option have you got?

[Old Greg]

Been told today all contractors must take a 10% cut in hours (to 36 hours) (which is fine) and also a 20% rate cut. 5-10% rate cut I would consider but 20% seems very high along with the reduced hours.

I know this topic has been discussed recently here but my question is: Is 20% a normal cut to what you have experienced.

Forget what the old rate was. That's gone (probably, you could try negotiating if you are in a very strong position).

How does the new rate stack up against what you could get elsewhere? Could you walk into a contract easily?

You could always accept and then leave when you find something better.

[jf2010]

Been told today all contractors must take a 10% cut in hours (to 36 hours) (which is fine) and also a 20% rate cut. 5-10% rate cut I would consider but 20% seems very high along with the reduced hours.

I know this topic has been discussed recently here but my question is: Is 20% a normal cut to what you have experienced.